Question

Business transactions completed by Hannah Venedict during the month of September are as follows.

a. Venedict invested \(60,000 cash along with office equipment valued at \)25,000 in exchange for common stock of a new company named HV Consulting.

b. The company purchased land valued at \(40,000 and a building valued at \)160,000. The purchase is paid with \(30,000 cash and a long-term note payable for \)170,000.

c. The company purchased \(2,000 of office supplies on credit.

d. Venedict invested her personal automobile in the company in exchange for more common stock. The automobile has a value of \)16,500 and is to be used exclusively in the business.

e. The company purchased \(5,600 of additional office equipment on credit.

f. The company paid \)1,800 cash salary to an assistant.

g. The company provided services to a client and collected \(8,000 cash.

h. The company paid \)635 cash for this month’s utilities.

i. The company paid \(2,000 cash to settle the account payable created in transaction c.

j. The company purchased \)20,300 of new office equipment by paying \(20,300 cash.

k. The company completed \)6,250 of services for a client, who must pay within 30 days.

l. The company paid \(1,800 cash salary to an assistant.

m. The company received \)4,000 cash in partial payment on the receivable created in transaction k.

n. The company paid $2,800 cash in dividends.

Required

2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Fees Earned (402); Salaries Expense (601); and Utilities Expense (602). Post the journal entries from part 1 to the ledger accounts and enter the balance after each posting.

Short answer

The totalcash ledger balance amounts to $12,665.

Step-by-step solution

General Ledger (part 1)

Cash Account No. 101
Date	PR	Debit	Credit	Balance
a	G1	$ 60,000		$ 60,000
b	G1		$ 30,000	30,000
f	G1		1,800	28,200
g	G1	8,000		36,200
h	G2		635	35,565
i	G2		2,000	33,565
j.	G2		20,300	13,265
l.	G2		1,800	11,465
m	G2	4,000		15,465
n	G2		2,800	12,665

Accounts Receivables Account No. 106
Date	PR	Debit	Credit	Balance
k	G2	$ 6,250		$ 6,250
m	G2		4,000	2,250

Office Supplies Account No. 108
Date	PR	Debit	Credit	Balance
c.	G1	$ 2,000		$ 2,000

Office Equipment Account No. 163
Date	PR	Debit	Credit	Balance
a	G1	$ 25,000		$ 25,000
e.	G1	5,600		30,600
j.	G2	20,300		50,900

General Ledger (part 2)

Automobiles Account No. 164
Date	PR	Debit	Credit	Balance
d.	G1	$ 16,500		$ 16,500

Building Account No. 170
Date	PR	Debit	Credit	Balance
b.	G1	$ 160,000		$ 160,000

Land Account No. 172
Date	PR	Debit	Credit	Balance
b.	G1	$ 40,000		$ 40,000

Accounts Payable Account No. 201
Date	PR	Debit	Credit	Balance
c.	G1		$ 2,000	$ 2,000
e.	G2		5,600	7,600
i.	G2	2,000		5,600

Notes Payable Account No. 250
Date	PR	Debit	Credit	Balance
b	G1		$ 170,000	$ 170,000

Common Stock Account No. 307
Date	PR	Debit	Credit	Balance
a	G1		$ 85,000	$ 85,000
d.	G1		16,500	101,500

General Ledger (part 3)

Dividends Account No. 319
Date	PR	Debit	Credit	Balance
n	G2	$ 2,800		$ 2,800

Fees Earned Account No. 402
Date	PR	Debit	Credit	Balance
g	G1		8,000	8,000
k.	G2		6,250	14,250

Salaries Expenses Account No. 601
Date	PR	Debit	Credit	Balance
f.	G1	$ 1,800		$ 1,800
l.	G2	1,800		3,600

Utilities Expense Account No. 602
Date	PR	Debit	Credit	Balance
h.	G2	$ 635		$ 635